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Page 11 of 14 <br />annual contributions are determined by CalPERS. <br /> <br /> <br /> <br /> <br /> <br />The City’s current funded status of 75% is in line with the state average when accounting for <br />the pension trust funds; without the pension trust funds, the City’s funding ratio of 68% is <br />below the state average. According to the actuarial consultant, it is rare for agencies to <br />withdraw funds from their pension trust accounts at this time since many agencies are still <br />trying to build up the funds. It is also important to note that at this time, the value of the <br />Section 115 Trust only moves the funded status from 68% to 75%. <br /> <br />While it may be expedient to use one-time money to help balance the budget in the near term, <br />ongoing use of savings is not recommended, as the City’s pension obligation remains <br />significant, and prematurely spending the Section 115 Trust will effectively "kick the can" and <br />leave future community members and leaders in a more difficult position. <br /> <br /> <br />Page 43 of 114